Despite not accounting for the highest value of Value Added Tax (VAT) generated in the current financial year, the Pioneering Sector has recorded the most impressive performance this year so far, growing by 283.21 per cent.
According to the just published Sectoral Distribution of VAT Report for the third quarter this year by the National Bureau of Statistics, NBS, the sector, which contributed about N979.95 billion to the gross VAT collections in Q1 this year, has continued to improve its performance on a sustainable basis, peaking at about N1.708 billion at the end of the third quarter. In Q2, the sector’s VAT stood at about N1.246 billion.
A cursory appraisal of the sector’s VAT performance in year 2016 showed that only about N2.92 billion was generated throughout the year. A breakdown of the VAT data for Q1, 2016 showed that total its value stood at N199.12 million as against the N216.32 million of the second quarter. In Q3 of the same year, the VAT data for Pioneering sector rose to N610.89 million while the improved performance trend was sustained to the last quarter with N1.896 billion recorded.
Overall, the sectoral distribution of VAT data for the quarter under review showed that N250.56 billion was generated as VAT as against N246.30 billion generated in the preceding quarter and N196.70 billion raked in the corresponding quarter (Q3) of last year, representing 1.73 percent Quarter-on-Quarter increase and 27.39 percent Year-on-Year increase.
A further analysis of the VAT distributions showed that other manufacturing generated the highest amount of VAT with N28.98 billion generated and was closely followed by Professional Services and Oil Producing both of which generated N22.73 billion and N12.09 billion respectively.
Also, Mining generated the least value of N33.70 million and was closely followed by Local Government Councils and Pharmaceutical, Soaps & Toiletries which generated N184.42 million and N193.78 million respectively.
Out of the total amounted generated in the quarter under review, the NBS further reported that N125.13 billion was generated as Non-Import VAT locally compared to the N72.10 billion generated as Non-Import VAT for foreign. The balance of N53.33 billion was generated as NCS-Import VAT.
Other highlights of the report indicated that Publishing, Printing and Paper Packaging sector improved its year-to-date growth to 57.1 percent. In Q1, the sector grossed N872.04 million while in the following quarter its VAT generation dropped to N614.52 million. In the just ended quarter, the sector’s collections dipped further to N529.16 million.